Malaysia a signed a fresh deal to proceed with the stalled China-backed East Coast Rail Link (ECRL) on April 12, 2019.  The Prime Minister’s office said constructing the first two phases of the rail link would now cost 44 billion ringgit (US$10.7 billion), down from the original cost of 65.5 billion ringgit. The statement said the new agreement “will pave the way for the resumption of the East Coast Rail Link project. This reduction will surely benefit Malaysia and lighten the burden on the country’s financial position”.

The prime minister’s long-time confidante and former Finance Minister Daim Zainuddin, acting as special envoy to the leader, was in Beijing to conclude negotiations. Daim said at a press conference that the rail link’s length would be reduced by 40km to 648km. The cost of building each kilometre of the line would drop to 68 million ringgit from 98 million ringgit. He quipped that the 21.5 billion ringgit hair cut on the original deal was “enough to build two more Petronas Twin Towers.”  Daim said further details on interest payments and financing would be released by Mahathir on Monday.

(Comment: The main contractor for the the East Coast Rail Link project is the China Communication Construction Company (CCCC)